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IMF Believes Browsing History Should Affect Credit Scores

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posted on Aug, 24 2021 @ 09:23 AM
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A group of researchers posting on the International Monetary Fund's blog page have determined that traditional credit scores based on hard financial data is no longer sufficient to determine credit in this day and age. Their suggestion is to begin using non-financial data including browsing history, online shopping behaviour, customer ratings for online vendors, your email provider, etc. Your digital footprint as it were.

Essentially, a Chinese style social credit system where your worth to society is determined by which websites you use or which stores you buy things from.

All of this data will of course be analyzed using state of the art AI technology that will automatically determine your credit based on what it decides about you through your internet habits.

www.extremetech.com...


A group of researchers has published a blog post at the International Monetary Fund’s website in which they call for a significant shift in how credit scores are assessed. Instead of being based on traditional metrics, the group believes banks should begin incorporating additional information, including your browser history.

The rise of the internet permits the use of new types of nonfinancial customer data, such as browsing histories and online shopping behavior of individuals, or customer ratings for online vendors.

The literature suggests that such non-financial data are valuable for financial decision making. Berg et al. (2019) show that easy-to-collect information such as the so-called “digital footprint” (email provider, mobile carrier, operating system, etc.) performs as well as traditional credit scores in assessing borrower risk. Moreover, there are complementarities between financial and non-financial data: combining credit scores and digital footprint further improves loan default predictions. Accordingly, the incorporation of non-financial data can lead to significant efficiency gains in financial intermediation.

privacy issues are another major concern. Companies may be experimenting with tracking various aspects of “soft” consumer behavior, but the idea of tying your credit score to your web history is very similar to the social credit score now assigned to every citizen by China. In that country, saying the wrong things or visiting the wrong websites can result in one’s family members being denied loans or access to certain social events. While the system contemplated is not that draconian, it’s still a step in the wrong direction.

The United States has none of the legal framework that would be required to deploy a credit monitoring system like this. Any bank or financial institution that wishes to use AI to make decisions regarding the creditworthiness of applicants based on their browser and shopping history needs to be regularly audited for bias against any group. The researchers that wrote this document for the IMF talk about hoovering up people’s shopping histories without considering that many people use the internet to shop for things they’re too embarrassed to walk into a store and buy. Who decides which stores and vendors count and which do not? Who watches over the data to make sure intensely embarrassing information is not leaked, either on purpose or by hackers more generally?

The fact that non-bank financial institutions may be jonesing to use some of this data (or already using it) is not a reason to allow it. It’s a reason to stay as far away from said organizations as possible. AI is not ready for this. Our privacy laws are not ready for this. The consistent messaging from reputable, sober researchers working in the field is that we’re nowhere near ready to turn such vital considerations over to a black box. The authors who wrote this paper may be absolute wizards of banking, but their optimism about the near-term state of AI networks is misplaced

edit on 24/8/2021 by dug88 because: (no reason given)



posted on Aug, 24 2021 @ 09:29 AM
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a reply to: dug88

OH FFS..! Money crunchers need to stick to crunching money; Social Media giants need to stick to number of clicks and thumbs up. What I think or what type of shoes I buy has VERY little—if anything—to do with whether or not I’ll pay off my mortgage.



posted on Aug, 24 2021 @ 09:30 AM
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So, people who are social and blow all their money going into debt and winding up in bankruptsy want to bring up their credit score to keep borrowing more money. That sounds sensible, just think how many lawyers will benefit from this over the next decade.



posted on Aug, 24 2021 @ 09:52 AM
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Another bulls#t scare tactic for all the micromanagers to swallow whole🤣

How can they even prove 100% that one single person was ever in control of a website account and a browser ?🤣




posted on Aug, 24 2021 @ 09:54 AM
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You'll own nothing and love it.

Second line.



posted on Aug, 24 2021 @ 09:55 AM
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I work in financial services and work with credit reporting daily. There are definitely some major flaws with the current system. However, I don't think non-financial behavior online should have anything to do with your credit scoring. I'd love to see how they've determined how your browsing history affects a borrower's ability to pay back debt.

I recall reading about how data from shopping can determine all kinds of future behavior (statistically). For example, if you look at a person's purchases at a store over time, it could predict an event like a divorce is eminent.

The older I get, the more I want to disconnect from the matrix.



posted on Aug, 24 2021 @ 10:05 AM
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originally posted by: Edumakated

The older I get, the more I want to disconnect from the matrix.



I am right here with you on that sentiment. Seems like a good time for a Carrington event!



posted on Aug, 24 2021 @ 10:07 AM
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time for some searching

"good investments"

"Sound financial strategies"

"How to be an antiracist"

"Submission is good."

"How can I comply better."

"The election wasn't stolen."

"I (heart) Kamela."


edit on 01032020 by ElGoobero because: (no reason given)



posted on Aug, 24 2021 @ 10:19 AM
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This is morose. Seriously morose. Load a Linux image on a thumb drive and use prepaid cards bought in cash to do anything online that one would be worried about hitting your credit score, like those 15 subscriptions to Trucker Feet pics on OnlyFans.

One day they may have a system developed well enough to lock it down, but even then there will be edge lords and hackers chipping away and setting up P2P type networks to sidestep. For now, we can laugh at old men who think they understand technology well enough to believe they can leverage online behavior for real world action.



posted on Aug, 24 2021 @ 10:22 AM
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a reply to: dug88




customer ratings for online vendors


What in the actual Sam Hill?!!

So basically don't leave a bad review, or return anything.



posted on Aug, 24 2021 @ 10:25 AM
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a reply to: dug88

Well, if that happens, I may be the first citizen with an actual negative credit score...



posted on Aug, 24 2021 @ 10:30 AM
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originally posted by: Edumakated
I work in financial services and work with credit reporting daily. There are definitely some major flaws with the current system. However, I don't think non-financial behavior online should have anything to do with your credit scoring. I'd love to see how they've determined how your browsing history affects a borrower's ability to pay back debt.

I recall reading about how data from shopping can determine all kinds of future behavior (statistically). For example, if you look at a person's purchases at a store over time, it could predict an event like a divorce is eminent.

The older I get, the more I want to disconnect from the matrix.


Hmmm….I might’ve been a little hasty claiming that what shoes I buy has very little to do with paying back my mortgage: “For example, if you look at a person's purchases at a store over time, it could predict an event like a divorce is eminent.”

Makes sense. It’s not unheard of for a mortgage to go into default because the divorcing parties can’t agree who gets the house and neither of them wants to pay the loan. Buying fancy cars, clothes, etc (Consumer debt) IS a given when people find themselves ‘back on the market’. Yeah…it could happen.



posted on Aug, 24 2021 @ 10:33 AM
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a reply to: dug88

why does everyone toss around what they say? who cares what the imf, un, who, (insert globalist) think? I think they should all go to jail. let's toss that one around.



posted on Aug, 24 2021 @ 10:34 AM
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a reply to: dug88

Credit scores need to go away period. As someone with no real credit because I live WITHIN MY MEANS it is a pain in the rear to get anything. Why should I have to go into debt just to prove what I can pay? It's utterly ridiculous logic. I am looking at buying a home and my DTI (debt to income) ratio is excellent but my credit is crap because I don't have any. I have been told to go get a credit card lol which is a joke because I don't want one and I can't get one. I have tried! It is amazing people can file bankruptcy and erase their debt yet people like me who live within their means are screwed. It is a crap system! I worked in banking for years and saw people's finances and most people live far beyond their means and are thousands in debt. I was raised to live on what you have not what you want.



posted on Aug, 24 2021 @ 10:43 AM
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a reply to: mblahnikluver

You could get a secured credit card with whatever limit you want putting down your own money. I helped my brother in this same situation. I know it goes against what you’re relaying but that is a way to get a credit card and start up your credit profile.



posted on Aug, 24 2021 @ 10:45 AM
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originally posted by: mblahnikluver
a reply to: dug88

Credit scores need to go away period. As someone with no real credit because I live WITHIN MY MEANS it is a pain in the rear to get anything. Why should I have to go into debt just to prove what I can pay? It's utterly ridiculous logic. I am looking at buying a home and my DTI (debt to income) ratio is excellent but my credit is crap because I don't have any. I have been told to go get a credit card lol which is a joke because I don't want one and I can't get one. I have tried! It is amazing people can file bankruptcy and erase their debt yet people like me who live within their means are screwed. It is a crap system! I worked in banking for years and saw people's finances and most people live far beyond their means and are thousands in debt. I was raised to live on what you have not what you want.


I work in mortgages. It is counterintuitive. Having bad credit is better than no credit. When a borrower has bad credit, the bank knows what they are investing in and thus the loan can be priced appropriately for risk. However, when a borrower has no credit, the bank is unable to assess risk.

Mortgages sometimes don't make sense though. There is a joke... I've been paying $2000/mo in rent for the past 5 years. However, the bank says I don't have a big enough down payment or good enough credit to buy a house that cost $1500/mo. Unfortunately, this is a real world example...



posted on Aug, 24 2021 @ 10:46 AM
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How does the IMF even have a say in anything regarding credit scores?

Also, how is this surprising anyone? At this point, we are so far beyond "living within our means" that we are teaching children in elementary school about credit cards and "establishing" credit rather than earning money, saving, and affording what you can buy.

The entire notion that the market dictates how prices have become so unaffordable (houses, cars, trucks, TV's, etc.) that we need lines of credit to afford anything just blows me away. Society is being manipulated into thinking this is the natural "evolution" of modern living and that having cash and actually paying for things is an outdated mode of thinking.

I, for one, will be stepping away from a society that thinks this is needed.






posted on Aug, 24 2021 @ 10:47 AM
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a reply to: dug88

I completely agree. If you are a billionaire pedo loser we should revoke your credit status and redistribute your wealth to community driven programs. Everyone else shouldnt even need credit because the banks are supposed to be insured for 80% of deposits, hence the 20% down on a note.



posted on Aug, 24 2021 @ 10:47 AM
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originally posted by: Edumakated
The older I get, the more I want to disconnect from the matrix.


Visa, MC, Discover, Amex and the rest want a word with you.



posted on Aug, 24 2021 @ 10:54 AM
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originally posted by: Edumakated

originally posted by: mblahnikluver
a reply to: dug88

Credit scores need to go away period. As someone with no real credit because I live WITHIN MY MEANS it is a pain in the rear to get anything. Why should I have to go into debt just to prove what I can pay? It's utterly ridiculous logic. I am looking at buying a home and my DTI (debt to income) ratio is excellent but my credit is crap because I don't have any. I have been told to go get a credit card lol which is a joke because I don't want one and I can't get one. I have tried! It is amazing people can file bankruptcy and erase their debt yet people like me who live within their means are screwed. It is a crap system! I worked in banking for years and saw people's finances and most people live far beyond their means and are thousands in debt. I was raised to live on what you have not what you want.


I work in mortgages. It is counterintuitive. Having bad credit is better than no credit. When a borrower has bad credit, the bank knows what they are investing in and thus the loan can be priced appropriately for risk. However, when a borrower has no credit, the bank is unable to assess risk.

Mortgages sometimes don't make sense though. There is a joke... I've been paying $2000/mo in rent for the past 5 years. However, the bank says I don't have a big enough down payment or good enough credit to buy a house that cost $1500/mo. Unfortunately, this is a real world example...


Oh I work in insurance and deal with mortgage companies every day. It is ridiculous!

There is an entire FB group on your last statement about paying high rent vs having to prove you can afford a mortgage that is half your rent. It is utter insanity!

I refuse to have debt just to prove I can afford a mortgage.

I tried to get a secure card and couldn't even get that! How crazy huh? It is what it is. The system needs to change but i doubt that will ever happen.

I see people all the time getting homes they can't afford and their mortgage person will work the numbers so the loan will go through, that irritates me as it is fraud.




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